Find out more about equity release

The service is here to help you find the right solution when it comes to equity release. When you call to speak with the team at HUB, who provide the Age Co Equity Release Advice Service, they’ll answer any initial questions you may have, check that you’re eligible for equity release, and if you want to book an appointment to see an equity release adviser they will arrange one for you. There’s no upfront cost charged for booking the appointment. It’s only if you decide to go ahead with a recommended equity release product that an advice and arrangement fee of £995 will be payable to HUB. To be eligible you’ll need to be a UK homeowner age 55+, with a property worth at least £70,000. These criteria do vary between product providers.

You’ll have a first appointment with your dedicated adviser, who will either come to your home, or they can speak with you over the phone. You’re welcome to have a friend or relative with you at the appointment. During this time your adviser will discuss your personal situation and your needs with you. They’ll explain all there is to know about equity release, and also look at alternative ways that you might be able to raise the cash you’re looking for.

If you feel that you are still interested in releasing equity after the first appointment, then you’ll have a second one with your adviser. Here you can ask further questions, learn what equity release product would suit you the best, and see how it would affect your means-tested benefits and reduce the value of your estate. All fees and costs would be explained to you. Your adviser can then help you complete the application for your recommended equity release product.

Once you’ve made an application for your recommended equity release product, it is sent to the product provider. They will arrange a valuation of your property. You’ll need to appoint a solicitor who will work alongside your product provider’s solicitor to put all the relevant paperwork in place. 

When all paperwork and legal matters are complete, your equity release provider will issue your funds via your solicitor.  

Equity is the value of your home once you’ve taken away any outstanding mortgage, or other form of debt secured against it. Equity release is a way you can access some of this value – as tax-free cash. You can do this while remaining living in the home you love.

There are two types of equity release available, lifetime mortgages and home reversion plans.

Lifetime mortgages are a type of loan secured against your home, allowing you to release a cash lump sum from the value of your property. You can also get drawdown lifetime mortgages, where you can release an initial cash lump sum, and also have an approved ‘cash facility’ that you can draw upon for further funds as and when you need them.

With a lifetime mortgage there are no need for regular repayments, although interest repayment options are available on some products. Usually interest is added to the loan amount, and to any interest accumulated previously. The amount you owe will continue to grow as this interest accumulates and is added to the loan over the long term. The loan and accumulated interest are usually repaid when you (or both of you if borrowing jointly) die, or when you move into permanent long-term care and the property is sold. 

With a home reversion plan you sell all, or a percentage, of your property to a home reversion provider in return for a cash lump sum. Because it’s not a loan, there aren’t any repayments necessary. You won’t receive the full market value for the portion of the property you sell. The home reversion provider will then sell the property at full market value at the point you die or move into permanent long-term care, and that's when they will receive their share of the proceeds of the sale.

Factors such as your age and the value of your home will determine the amount of money you can release. You can use this lifetime mortgage calculator to give you an estimate, but for a more accurate quote you should book an appointment with an equity release adviser.

One of the reasons equity release is popular as an alternative to downsizing is because it gives you access to cash, without having to move out of the home that you love and know.  

If you do wish to move house after you’ve taken out an equity release product, then you’ll have the right to move your equity release product with you to your new home. The new home will need to meet your equity release provider’s lending criteria. 

When you take out an equity release product, you can expect to pay:

• Equity release advice fees

• Product set up costs

• Valuation fees

• Legal fees

• In the case of a lifetime mortgage, interest payments may be payable. It all depends on the product. 

An equity release adviser would explain all fees and costs to you in detail before you go ahead with an equity release product.

With some equity release products you can ring fence a portion of your property value, so you can leave an inheritance to your loved ones if you wish. You’ll want to talk to your equity release adviser about ‘Inheritance Protection’ if this is something that is important to you.

Some people choose to use equity release to give a financial gift to family, while the gifter is still around to watch the family member enjoy it. For example, you may want to take out equity release to help a younger family member pay for a wedding or pay for a deposit on a first home.

A ‘no negative equity guarantee’ applies to lifetime mortgages, offered by Equity Release Council members. The Age Co Equity Release Advice Service will generally only recommend products from providers who are members of the Equity Release Council.

The no negative equity guarantee means that you won't have to repay more than the value of your home once it has been sold, following your death or movement into long term care. So you wouldn’t pass on equity release debt to any beneficiaries.